The United States Department of Energy (DOE) recently announced a nearly $1 billion funding package aimed at strengthening domestic supply chains for critical minerals and materials. More than half of the funds will go directly to battery materials processing, manufacturing, and recycling, in a move designed to reduce dependence on imports and increase U.S. control over the resources that power clean technologies.
The initiative is aligned with President Trump’s “Unleashing American Energy” executive order, which prioritizes federal support for critical mineral projects. While the administration has largely shifted energy policy back toward fossil fuels, this investment underscores the strategic importance of minerals like lithium, graphite, nickel, copper, and rare earths to both national security and the clean energy economy.
The DOE’s Office of Manufacturing and Energy Supply Chains (MESC) is preparing a notice of funding opportunity worth $500 million to expand U.S. facilities for mineral processing, derivative battery manufacturing, and recycling. Another $250 million will target industrial sites that can extract byproducts with commercial value, $135 million will strengthen rare earth supply chains, and additional funds will go toward commercialization accelerators and advanced research projects.
U.S. Energy Secretary Chris Wright described the initiative as a bid to “reshore” critical materials supply chains and end reliance on “foreign actors.” The underlying concern is China’s dominance in refining and processing many of these minerals, which has become a geopolitical flashpoint in the global race for energy transition technologies.
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Although this funding is being channeled entirely into U.S. projects, its implications extend far beyond American borders. Africa, home to some of the world’s richest deposits of battery minerals, sits directly in the slipstream of this policy.
Countries such as Zimbabwe, the Democratic Republic of Congo, Namibia, and Mozambique supply large quantities of lithium, cobalt, manganese, and other minerals that are central to battery production. These resources are vital not only for electric vehicles but also for renewable energy storage and digital infrastructure.
The U.S. push to build domestic capacity signals a shift in the global market dynamics that African exporters must navigate. By focusing heavily on processing and recycling at home, Washington is seeking to capture more of the value chain that traditionally leaves Africa at the level of raw material extraction. This risks leaving African countries locked in as suppliers of unprocessed ores, unless they accelerate efforts to add value locally.
On one hand, increased competition in mineral processing may reduce U.S. reliance on African imports, potentially affecting prices and limiting market access. On the other, the global spotlight on critical minerals presents an opportunity for Africa to move beyond resource dependence and develop local refining, manufacturing, and recycling industries.
Zimbabwe has already banned the export of unprocessed lithium to encourage domestic beneficiation. The African Continental Free Trade Area (AfCFTA) could further enable regional value chains, connecting mining nations with industrial hubs such as South Africa to build integrated supply chains. Meanwhile, institutions like the African Development Bank are calling for investment in refining and processing facilities that would allow African countries to capture more economic value and jobs from the green transition.
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Another dimension of the DOE’s program is recycling—an area where Africa risks falling behind. As the U.S. channels hundreds of millions into technologies to recover critical minerals from used batteries and industrial processes, Africa has yet to establish large-scale recycling systems. Without them, the continent could face growing environmental hazards from discarded batteries, even as it exports virgin minerals to the rest of the world.
The U.S. investment underscores a broader truth: control over minerals is as much about politics and security as it is about energy transition. For Africa, this moment demands a strategic response. Building policies that attract investment in processing, enforcing responsible mining standards, and fostering regional collaboration will determine whether Africa remains a raw materials supplier or emerges as a full participant in the global battery economy.
